https://www.taxtmi.com/caselaws?id=386060 An inter-corporate deposit or loan between companies does not fall within the MPID Act's definition of "deposit" because the Act is aimed at protecting ordinary and unsuspecting depositors from fraudulent financial establishments, not regulating business-to-business funding arrangements. The Court noted that the Companies Act, 1956/2013 and the Deposit Rules specifically exclude amounts received by one company from another company from the concept of deposit, and that treating such transactions as deposits under the MPID Act would create overlap with company-law remedies and dilute protection for small depositors. The inter-corporate deposits were therefore excluded from MPID proceedings. en-us Fri, 13 Sep 2019 00:00:00 +0530 Sat, 21 Sep 2019 07:23:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=386060 An inter-corporate deposit or loan between companies does not fall within the MPID Act's definition of "deposit" because the Act is aimed at protecting ordinary and unsuspecting depositors from fraudulent financial establishments, not regulating business-to-business funding arrangements. The Court noted that the Companies Act, 1956/2013 and the Deposit Rules specifically exclude amounts received by one company from another company from the concept of deposit, and that treating such transactions as deposits under the MPID Act would create overlap with company-law remedies and dilute protection for small depositors. The inter-corporate deposits were therefore excluded from MPID proceedings. Case-Laws Indian Laws Fri, 13 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=386060